Wouldn’t it be wonderful if you could just go into a shop, buy any phone you wanted, and then plug your existing cell phone SIM card into it to get it to work?

Imagine the possibilities: you’d be able to buy the hottest phone whenever you had the money, without signing yourself up to an insane contract extension. You could go to the network with the best coverage, and not have to worry if they had the best handsets. You could use your iPhone legally on any network that could support it!

It’s a pipe dream right now in America, unfortunately, but it might soon be a reality in Japan. The Japanese government has just launched a review of the existing SIM lock system that sees certain phones bonded for life to different carriers. The review seems to be instigated by the annoyance of Japanese business travelers who fly overseas but can’t simply plug a local SIM into their phones.

It seems like a great idea… but in actuality, many consumers might not prefer it. The bottom line is that locked handsets and carrier exclusives substantially shrink the price of mobile phones. That iPhone you pick up for $199 would cost you $800 if it wasn’t subsidized, and if a carrier can’t lock a phone, well, there goes a lot of the carrier incentive to subsidize. SIM card unlock might be best for consumers as a whole… but it could very well be a major drawback to individual customers.

Reader Comments

Wouldn’t it be wonderful if you could just go into a shop, buy any phone you wanted, and then plug your existing cell phone SIM card into it to get it to work?

Huh?!? This is what I do now — with my T-Mobile prepaid SIM card.

http://www.majid.info/ Fazal Majid

The “but phones will become more expensive” argument only matters for those who can’t count, e.g. all those people who bought overpriced real estate with zero-interest teaser rate ARMs, The $600 price of an iPhone (what you pay if yours gets stolen, not $800) is insignificant compared to the $2400 you pay for “service” over the 2-year contract term.